In the new issue of Regulation, economist Pierre Lemieux argues that the recent oil price decline is at least partly the result of increased supply from the extraction of shale oil. The increased supply allows the economy to produce more goods, which benefits some people, if not all of them. Thus, contrary to some commentary in the press, cheaper oil prices cannot harm the economy as a whole.

Two long wars, chronic deficits, the financial crisis, the costly drug war, the growth of executive power under Presidents Bush and Obama, and the revelations about NSA abuses, have given rise to a growing libertarian movement in our country – with a greater focus on individual liberty and less government power. David Boaz’s newly released The Libertarian Mind is a comprehensive guide to the history, philosophy, and growth of the libertarian movement, with incisive analyses of today’s most pressing issues and policies.

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Tag: ed morrissey

On Friday, I blogged about HHS Secretary Kathleen Sebelius’ letter to the health insurance lobby, in which she attempts to stifle political speech by using the new powers that ObamaCare grants her to threaten health insurance companies that claim ObamaCare’s coverage mandates are one cause behind rising premiums. (Never mind that the insurers’ estimates – which project that ObamaCare will increase premiums in 2011 by as much as 9 percent – are in line with those put forward by HHS.)

Here’s a smattering of reactions from others.

The Wall Street Journal: “The Health and Human Services secretary…warned that ‘there will be zero tolerance for this type of misinformation and unjustified rate increases.’ Zero tolerance for expressing an opinion, or offering an explanation to policyholders? They’re more subtle than this in Caracas.”

Chicago Tribune: “President Obama’s health care reform plan, enacted in March, is not terribly popular with the American people…The administration can’t tell the public to stop grousing. It can, however, try to silence health insurers who have the nerve to say out loud what basic economic theory indicates…Apparently, harsh punishment is in store for anyone who refuses to parrot the administration line. But there is every reason to think this alleged libel is true.”

Tyler Cowen: “Nowhere is it stated that these rate hikes are against the law (even if you think they should be), nor can this ‘misinformation’ be against the law…[The letter] is worse than I had been expecting.”

Ed Morrissey: “Rarely have we heard a Cabinet official tell Americans to stay out of political debates at the risk of losing their businesses. It points out the danger in having government run industries and holding a position where politicians can actually destroy a business out of spite.”

Michael Barone: “Sebelius is threatening to put health insurers out of business in a substantial portion of the market if they state that Obamacare is boosting their costs…The threat to use government regulation to destroy or harm someone’s business because they disagree with government officials is thuggery. Like the Obama administration’s transfer of money from Chrysler bondholders to its political allies in the United Auto Workers, it is a form of gangster government.”

Eugene Volokh: “even if such action would be constitutionally permissible, it would be quite troubling, as would threats that seem to hint as such action: It would involve the Administration’s deliberately trying to suppress criticism of its policies, under a ‘misinformation’ standard that sounds highly subjective and politically contestable. (Consider [Sebelius’] reference ‘to our analysis and those of some industry and academic experts’ — what about the analysis of other industry and academic experts?) Perhaps I’m missing some important context here. But my first reaction is that this is ominous behavior on the Administration’s part, and seems to have both the intent and effect of suppressing criticism of the Administration’s policies — including criticism that simply expresses opinions the Administration dislikes, and makes estimates that it disagrees with, and not just criticism that contains objectively demonstrable ‘misinformation.’”

I don’t think it’s accurate to say that some Tea Partiers “like” big government; it’s more like some aren’t enthusiastic about dismantling as much of the federal government as others, especially the more doctrinaire libertarians.

In the video I noted that polls showed a majority of the people who identify with the Tea Party movement also thought the entitlement programs were worth their cost. My colleague, Jagadeesh Gokhale, has estimated that paying for current entitlements would require 9 percent of GNP in perpetuity. This is unlikely. Entitlements will have to be changed since too much has been promised. People who think the programs have been worth their cost are not likely initially to support reining in the entitlements. In saying that, I expressed a concern, not a prediction. It may be that Tea Party people will also come to recognize, as Ed Morrissey does, that the entitlement state cannot continue.

I said in the video that Tea Party people should recognize that “Democrats are not always the enemy.” Morrissey rightly says I should not talk about enemies in domestic politics. He adds that the current House Democratic caucus does not deserve support because its leaders favor expanding government. He’s right. Divided government is what we need now. However, I had in mind the more centrist Democrats that supported the tax and spending cuts of 1981 and the tax reform of 1986. I am urging Tea Party people to avoid becoming too partisan. Perhaps some of them will still be in Congress in 2011.

Then there’s the question of foreign policy and defense spending. In the video I said that a limited government movement like the Tea Party should start thinking outside the box on spending. I suggested rethinking America’s expansive commitments in foreign affairs as a way to reduce our military spending. I did not deny – who could deny it? – that the Constitution entrusts the common defense to the federal government. I also recognize that the United States continues to have enemies. The question is: what should the government do to provide the common defense consistent with limited government?

In the past decade, we have spent enormous sums trying to transform two nations and the entire Middle East into liberal democracies. This was our “forward strategy” for dealing with terrorism. It reminded me of past Progressive crusades at home and abroad. The strategy was a domestic political disaster, and we shall see whether our massive outlays eventually produce stability in Iraq or Afghanistan. For my part, I remain partial to the conservative virtues of realism, restraint, and prudence in dealing with other nations.

The United States is currently spending about half of all military spending in the world. We have some room for restraint without endangering American lives. We will still have a Navy that protects trade routes to the extent they are threatened. As I said in the video, we need to rethink our overall place in the world if we are to corral the big government beast. The Tea Party folks can lead the way here.

The Pentagon is not most of the federal budget. It is the only part historically, however, that can vary downward as well as upward. Sometime soon, the non-defense parts of the budget are going to have to vary downward rather than just upward. Being serious about limiting government, however, requires that all spending be considered. Since I think the Tea Party movement is serious about cutting government, it would be better if they had a look at all spending from the start.